Keppel REIT (KREIT SP)
2H21: Sustaining Positive Rental Reversion
KREIT’s property income and NPI grew 16.9% and 17.5% yoy respectively in 2H21 due to the acquisition of Pinnacle Office Park in Sydney (completed on 31 Dec 20) and Keppel Bay Tower in Singapore (completed on 18 May 21). Physical occupancy has improved as more employees are working from offices. Management plans to backfill transitional vacancy at OFC and MBFC and targets positive low-to-mid single-digit rental reversion in 2022. Maintain BUY with a target price of S$1.52. |
Vicplas International Ltd
Tapping into medical contract manufacturing
■ We initiate coverage of Vicplas with an Add rating and a P/E-derived TP of
S$0.28.
■ We see EPS CAGR of 10.8% over FY7/22-24F for Vicplas, driven by growth
in its medical business.
■ Re-rating catalysts are stronger-than-expected earnings due to new
customer/product wins. Downside risks: disruptions from Covid-19.
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Keppel REIT
Rent reversion remains positive in 2H
■ 2H/FY21 DPU of 2.88/5.82 Scts is slightly ahead of our expectations at
52.5%/106.1% of our FY21F forecast.
■ Rent reversions remained positive although moderated in 2H21.
■ Reiterate Add rating with an unchanged DDM-based TP of S$1.29.
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REIT
More divestment activities
■ FLCT divests Cross Street Exchange for S$810.8m while CICT announced
the sale of JCube for S$340m.
■ Transactions are done above book value and are likely to boost BV/unit.
FLCT’s gearing could improve to 29.3%.
■ Reiterate sector Overweight. Our sector top pick is KDC REIT.
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